ML17299A953
| ML17299A953 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 12/26/1985 |
| From: | Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML17299A949 | List: |
| References | |
| TAC-60475, NUDOCS 8601210646 | |
| Download: ML17299A953 (6) | |
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UNITEDSTATES NUCI,EAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO AMENDMENT NO.
3 TO FACILITY OPERATING LICENSE NO. NPF-41 ARIZONA PUBLIC SERVICE COMPANY, ET AL.
PALO VERDE NUCLEAR GENERATING STATION, UNIT NO. I DOCKET NO.
STN 50-528
1.0 INTRODUCTION
By application dated October 18, 1985, the Arizona Public Service Company (APS) on behalf of Public Service Company of New Mexico (PNM), requested approval for PNM to sell and lease back all or a portion of PNM's 10.2 percent ownership interest in the Palo Verde Nuclear Generatinq Station, Unit 1, and all or a proportionate
'share of one-third of PNM's 10.2 percent ownership interest in the Palo Verde common facilities.
In addition to information provided in the application, the licensee provided additional financial information by letter dated November 21, 1985.
- 2. 0 COMMISSION ACTION
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On December 12, 1985, the Nuclear Regulatory Commission, upon review of the staff's Policy Papers SECY-85-350 and SECY 85@67 which contained a discussion of the proposed transaction, issued an Order consenting to the sale and lease-back transaction.
To provide for health and safety concerns, it required that:
( I)
The lessor and anyone else who may acquire an interest under the proposed transaction be prohibited from exercising directly or indirectly any control over the licensees of Palo Verde Unit 1.
For purpose of this condition, the limitations in 10 CFR 50.81 "Creditor Regulations" as now in effect, and as they may be subsequently
- amended, are fully applicable to the named lessor and any successor in interest to that lessor as long as.
the license for the Palo Verde Unit I remains in effect.
Accordingly, this financial transaction shall have no effect on the license for Palo Verde Unit I throughout the term of the license.
r>zona u lic Service Company (Palo Verde Unit I), Docket No.
STN 50-528 ecem er
'60 i2i064685i 226 PDR ADOCK'5000MS P
0 (2)
The Palo Verde Unit 1 operating license be amended to expressly require that the NRC be notified in writing prior to any chanqe in:
(i) the executed lease agreements; (ii) the ANPP Participation Agreement; (iii) the existing insurance policies; and (iv) any action by the lessor or others which may have an adverse effect on the safe operation of the facility.
(3)
The Palo Verde Unit 1 license be amended to reflect PNM's position as a
lessee of the facility 3 ~ 0 CONTACT WITH STATE OFFICIAL The Arizona Radiation Regulatory Agency has been advised of the proposed determination of no significant hazards consideration with regard to this amendment.
No comments were received
4.0 ENVIRONMENTAL CONSIDERATION
S This amendment only involves the administration of the credit and financial arrangements for Palo Verde Unit 1 ~
The parties will enter into agreements which provide for the sale and leaseback of PNM's ownership share under terms requiring PNM's continued full control and responsibility over this ownership share.
The Comission has ordered (footnote 1,
~su ra) that in the administration of this arrangement, the lessor and anyone else who may acquire an interest under this transaction are prohibited from exercisinq directly or indirectly, any control of the Palo Verde Unit 1 license.
The amendment also includes a new reporting requirement that the NRC must be notified in writing prior to any change in the executed lease agreements, the ANPP participation agreement, and the existing insurance policies'ccordingly this amendment meets the eligibility criteria for categorical exclusion set forth in 10 CFR 51 ~ 22 (c)(10)
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CONCLUSION The staff has concluded, based on the considerations discussed above, that (1) there is'easonable assurance that the health and safety of the public will not be endangered by operation in the proposed
- manner, (2) such activities will be conducted in compliance with the Commission's regulations, and (3) the issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public Dated: DEC 2 6 1S85
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BEG a 6 1985 ISSUANCE OF AMENDMENT NO.
3 TO FACILITY OPERATING LICENSE NPF-41 FOR PALO YERDE UNIT 1 DISTRIBUTION CDocket-Fs-le-50-528 NRC PDR Local PDR PBD-7 Reading FMiraglia JLee (20)
MLicitra
- Attorney, OELD LDewey LHarmon EJordan Bhrimes JPartlow TBarnhart (4)
WJones WRegan ACRS (10)
- RDiggs, LFMB MVirgilio, TSRG
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